Johnathan Paoli
Cosatu has welcomed Parliamentary Standing Committee Finance’s decision for the two-pot pension reforms to kick in from 1 March next year as opposed to the March 2025 date suggested by the Treasury to give SARS and the retirement industry more time to put systems in place.
The two-pot retirement system is designed to allow consumers to draw some of their retirement savings before they retire to fund unexpected expenses instead of turning to expensive debt alternatives.
However, two thirds of contributions will still go to a retirement pot that will only be accessible after normal retirement age, while the remaining one-third will go into a savings pot, allowing immediate access under certain conditions.
Acting National Spokesperson and Parliamentary Coordinator Matthew Parks said Cosatu was pleased that the committee members stood with workers in defence of the 1 March 2024 implementation date after some organisations, in pursuit of maximising
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